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HomeCrypto NewsAlleged Terra Rebels Scam Could Put a Stop to Binance LUNC Burns

Alleged Terra Rebels Scam Could Put a Stop to Binance LUNC Burns

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LUNC DAO has accused the Terra Rebels of defrauding the Terra Classic community and jeopardizing Binance support.

In a tweet today, LUNC DAO, a popular Terra Luna Classic (LUNC) validator, accused Terra Rebels, an independent Terra Classic development group, of defrauding community members and jeopardizing Binance support with its latest funding proposal.

The proposal in question saw the Terra Rebels receive 937.5 million LUNC ($150k) for infrastructure development in order to make Rebel Station its Terra Station alternative independent of Terraform Labs. However, LUNC DAO claims this funding has gone to community moderators and other non-technical members, citing ex-Terra Rebels members as sources.

Read Also: A Validator Burns 100% of His LUNC Commissions, Millions of Terra Classic Burnt

Notably, the proposal had previously been the target of harsh criticism from influential members of the community who described it as ambiguous. Duncan Day (@wrapped dday), who left the group days before the proposal passed amid numerous complaints, called the proposal “backpay” in a tweet on Monday.

Meanwhile, the Terra Rebels have done little to refute these claims, remaining ambiguous about who receives a distribution and for what purpose.

“… I don’t feel concerns the community as long as TR members are happy with said distribution to members capable of providing proof of work,” ClanMudhorn, a Terra Rebels admin, said in response to inquiries as previously reported.

TerraCVita, a Terra Classic development group that voted against the proposal, claimed that it was a job that a single developer could complete in a few days. It would take two months, according to the Terra Rebels.

Will Binance WithdrawSupport for LUNC?

While LUNC DAO claims that Binance wants to end its LUNC burns due to the alleged scam, Binance has yet to publicly express such a desire.

At the end of September, the leading crypto exchange began LUNC trading fee burns in support of the community, sacrificing millions of dollars in revenue. Notably, it has not imposed any conditions on this assistance and is free to discontinue it at any time.

Related Article: Terra Rebels Claims Terra Classic V23 Upgrade Has Been Delivered

Binance is the largest contributor to LUNC burns, burning over 20 billion LUNC, nearly twice as much as the second-largest LUNC burner, the on-chain burn tax parameter. Binance burns are now done every month. On December 1, the crypto exchange burned over 6 billion LUNC.

Many believe that Binance’s and other exchanges’ support will reduce the 6 trillion LUNC supply.

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